2024 Housing

Mortgage Rate ‘Lock-In’ Effect Keeping Sellers Back, Report Says

Posted on by TMN Editor
Analysis from the Federal Housing Finance Agency finds that, while U.S. mortgage rates are not historically high, the gap between the rates existing homeowners are paying and would-be home buyers are facing has reached a point not seen in decades. The result is a “lock-in effect” that’s keeping the housing supply extremely tight, a problem that President Joe Biden’s proposed subsidies are unlikely to fix. The findings are in a March 2024 working paper entitled “The Lock-In Effect of Rising Mortgage Rates” by Ross M. Batzer, Jonah R. Coste, William M. Doerner, and Michael J. Seiler. “People can be ‘locked-in’ or constrained in their ability to make appropriate financial changes,” the authors write, pointing to obstacles like “being unable to…

Listings, Properties Under Contract Increased In December

Posted on by TMN Editor
Both listings and sales improved in December, suggesting the impact of cooling rates may finally be encouraging movement in the market. That’s according to HouseCanary’s December Market Pulse Report, which found new listings up 5% YOY last month. Though stock remains historically low and many buyers are still priced out of the market, the data may reflect the beginning of a market reset for 2024. “The slight increase in December listings indicates the impact of lower mortgage rates is beginning to trickle down into the market which comes as an optimistic sign as we head into the new year,” said Jeremy Sicklick, HouseCanary Co-Founder and CEO. “With that said, any market turns are likely to be slow.” Sicklick pointed to…